India's Electronics Sector Faces Double Trouble: Gold Curbs and China's Rare Earth Restrictions

India's electronics manufacturing sector is facing significant challenges due to China's restrictions on rare earth magnet exports and recent import curbs on gold compounds, pivotal raw materials in electronic production.

These materials are integral to components ranging from semiconductors to electric vehicles. A reclassification by the Directorate General of Foreign Trade (DGFT) has moved such imports from 'free' to 'restricted', following international trade tensions.

Industry representatives, including the India Cellular and Electronics Association and Elcina, warn that these developments could deter investment and slow down the 'Make in India' initiative.

(With inputs from agencies.)